The Broncos won their first six games of the season, before being felled by the then-5-1 New York Jets on Monday Night Football. They won two more games to improve to 8–1, tied with the Jets for the best record in the league. Although they would go 3–4 down the stretch, alternating wins and losses, Denver still finished ahead of the Seahawks and Chiefs in first place in the AFC West.

They won their divisional playoff game against the Patriots at home 22–17. They then played the Cleveland Browns in Cleveland for the AFC Championship. The game culminated in the famous "Drive", where John Elway led a 98-yard drive for a touchdown pass to Mark Jackson to tie the game and send it to overtime, where they won by a field goal, 23–20.

This game is best remembered for The Drive when the Broncos drove 98 yards to tie the game with 37 seconds left in regulation, and Denver kicker Rich Karlis made the game-winning 33-yard field goal 5:38 into overtime.

The Browns scored first when quarterback Bernie Kosar threw a 6-yard touchdown pass to running back Herman Fontenot at the end of an 86-yard drive. But the Broncos then scored 10 unanswered points: Karlis' 19-yard field goal and running back Gerald Willhite's 1-yard rushing touchdown. Cleveland kicker Mark Moseley's 29-yard field goal before halftime tied the score, 10–10. The teams exchanged punts before Kosar completed a 48-yard touchdown pass to Brian Brennan with 5:43 remaining in regulation. Elway then led his team from their own 2-yard line to tie the game on wide receiver Mark Jackson's 5-yard touchdown reception with 37 seconds left in regulation. Karlis' game-winning field goal in overtime capped a 60-yard drive after the Browns were forced to punt.

They played the Giants in Super Bowl XXI, losing 20–39, the first of Elway's five Super Bowls and the first of his three losses. Despite leading 10–9 at halftime, the Broncos collapsed in the second half as the Giants scored 30 points to Denver's ten.

John Elway had 280 completions for 3,485 yards, 19 touchdowns and 13 interceptions. He also had 52 rushes for 257 yards, third highest on the team, and one rushing touchdown. He was fifth in the league in completions, ninth in total yards, and tenth in touchdowns.

Mark Jackson had 38 receptions for 738 yards and one touchdown. Steve Watson had 45 receptions for 699 yards and three touchdowns. Vance Johnson had 31 receptions for 363 yards and two touchdowns. Clint Sampson had 21 receptions for 259 yards. Orson Mobley had 22 reception for 332 yards and one touchdown.

The primary running back Sammy Winder had 240 rushes for 789 yards and 9 touchdowns, seventh highest in the league. He also had five touchdown receptions, giving him 14 total touchdowns for the season, fourth in the league. Gerald Willhite had 85 rushes for 365 yards and five rushing touchdowns and 64 receptions for 529 yards and 3 receiving touchdowns.

Rich Karlis kicked 20 field goals out of 28 attempted, including the game-winning field goal in the AFC Championship Game. He kicked 44 out of 45 extra points.

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